Green Tea Market Growth Drivers and Forecast 20242031
The global green tea market is experiencing significant growth, driven by increasing consumer awareness of its health benefits and a growing preference for environmentally friendly and sustainable agricultural practices. Green tea's rich content of antioxidants, particularly epigallocatechin gallate (EGCG), has gained recognition for its potential to combat free radicals and reduce oxidative stress, contributing to its market appeal.
For Full Industry Insights: https://www.fairfieldmarketresearch.com/report/green-tea-market
However, the green tea market faces constraints such as susceptibility to oxidation and quality degradation compared to black tea. Maintaining freshness can be a challenge, particularly in unsuitable storage conditions. In 2022, Sencha dominated the market share due to its expanding consumer popularity and numerous health benefits. The tea bags and sachets segment has expanded rapidly worldwide as convenience and portable food and beverages become increasingly popular.
Key Report Findings
Green Tea Market Size: Expected to grow from US$15.9 Bn in 2022 to US$24.7 Bn by 2030, with a CAGR of 9% from 2023 to 2030.
Sencha Dominance: Sencha held the greatest market share in 2022, driven by its health benefits and popularity.
Tea Bags & Sachets: The largest market share due to simple preparation and convenience.
Supermarkets/Hypermarkets: Exhibiting the most growth due to the wide range of products and convenience they offer to patrons.
Regional Leadership: Asia Pacific remains the largest green tea market globally, with North America expected to show the quickest growth rate.
Market Growth Drivers
Greater Inclination for Health Benefits Through Green Tea
The growing awareness of antioxidants, particularly in the context of health and wellness, has propelled the market for green tea. Green tea, known for its high levels of antioxidants, has become a preferred choice for health-conscious consumers seeking to harness the potential health benefits of these compounds. Antioxidants in green tea, like catechins, have been
associated with various health advantages, including heart wellness, weight management, and anti-aging effects.
Low Caffeine Content Makes it an Attractive Choice
Green tea's relatively low caffeine content compared to coffee and even black tea has driven substantial market growth. Consumers become more conscious of their caffeine intake and green tea's milder caffeine levels offer an attractive alternative. It provides a gentle, sustained energy boost without the jittery effects associated with higher-caffeine beverages. This broader audience appeal, including individuals sensitive to caffeine or seeking a more relaxing tea experience, contributes to the market's expansion.
Major Market Restraints
Lower Shelf-life of Green Tea
A significant restraint in the green tea industry is its lower shelf life compared to other tea varieties. Green tea is more susceptible to oxidation and quality degradation due to its minimal processing, which leaves it exposed to environmental factors that can alter its flavour and nutritional profile over time. Maintaining freshness is a critical challenge, especially in unsuitable storage conditions or when green tea products are not sealed airtight.
Cultural Differences Across Regions
While green tea holds deep cultural significance in regions like Japan and China, where tea ceremonies and traditions have been passed down for centuries, these customs may not hold the same sway in other parts of the world. In regions with a strong coffee culture or a preference for other beverages, the adoption of green tea can be hindered. Consumer tastes and habits can be firmly rooted in local customs, making it challenging for green tea to gain widespread acceptance.
Key Trends and Opportunities
Emergence of Functional and Specialty Green Teas
The market can capitalize on the development of functional green teas, such as those enriched with additional health-promoting ingredients like probiotics, vitamins, or adaptogens. Specialty green teas, including rare and unique varieties, also present opportunities. Marketing initiatives and educational campaigns emphasizing the advantages of green tea, its production processes, and its potential effects on health and the environment have aided its expansion.
Flavour Innovations
Introducing new and exotic flavour profiles in green tea is a strategy that can greatly appeal to a wider consumer base. By infusing green tea with innovative combinations of tropical fruits, herbs, and botanicals, tea producers can offer an array of enticing options that cater to evolving consumer preferences. These flavour innovations can create a more enjoyable and diverse tea-drinking experience, attracting those who might find the traditional grassy or vegetal notes of green tea less appealing.
Regulatory Scenario
The regulatory scenario plays a significant role in shaping the green tea industry. Regulations related to food safety, labelling, and quality standards directly impact production, distribution, and marketing. For green tea producers, adhering to these regulations is essential to maintain consumer trust and market credibility.
Certification is a vital aspect of the green tea industry, assuring consumers of the product's eco-friendly and sustainable attributes. The International Federation of Organic Agriculture Movements (IFOAM) unites over a hundred countries and numerous member organisations, creating a standardised framework for green certification. For green tea growers, organisations like INDOCERT, ECOCERT SA, and others offer the means to market, label, and advertise their products as green.
Fairfield’s Ranking Board
Top Segments
Sencha Category Retains Dominance
Sencha has consistently maintained its dominance over other segments by type, driven by its versatility and reputed health-enhancing properties. Sencha can be enjoyed both hot and cold, making it suitable for different seasons and occasions. Its cultivation process preserves the tea's bright green colour and natural antioxidants, such as catechins, which have garnered attention for their potential health benefits.
Tea Bags Bestseller
Green tea bags have experienced a substantial rise in popularity due to their convenience and simplicity. They offer a quick and easy method of preparing green tea without the need for additional tools. The loose leaves category is expected to expand significantly due to the firstmover advantage and the control it offers consumers over the taste of their beverage.
Supermarkets/Hypermarkets
In 2022, supermarkets/hypermarkets held most of the market share due to the wide range of options they offer, promoting the expansion of the channel. Online retail is anticipated to increase the fastest, providing manufacturers with the opportunity to connect with consumers through digital channels.
Regional Outlook
Asia Pacific Remains the Top Contributor
Asia Pacific is anticipated to hold the largest market share for green tea, driven by the world's top green tea producers, including China, India, and Sri Lanka. The region's climate, humidity, and soil texture are suitable for tea cultivation, and the high consumption of functional drinks, including green tea, further supports market growth.
North American Market Growth
North America has the fastest-growing market share for green tea, driven by increasing awareness of its health benefits. The demand for green tea among millennials has surged as functional beverages become increasingly popular. The US and Canada are important markets for green tea, with consumers seeking products that align with health trends and ethical considerations.
Competitive Landscape Analysis
The global market for green tea is competitive, with many companies vying for market share. Marketing strategies and fundamental processing enhancements play a crucial role in establishing a brand as a market leader. Adding a green tag along with several flavours serves as a foundation for innovation. Green tea producers are implementing various methods, including new product innovations, mergers and acquisitions, and plant capacity enhancement, to increase their market share and global presence.
Key Players in the Global Green Tea Space
Associated British Foods plc
AMORE Pacific Corp
Unilever plc
Tata Consumer Products Limited
The Bigelow Tea Company
The Republic of Tea, Inc.
The Stash Tea Company
Tazo Tea Company
Shangri La Tea Company
Newman’s Own, Inc.
Compass Tea Company
Davidson’s Green s
Little Red Cup Tea Co.
Numi Inc.
Frontier Natural Products
Kirin Beverage Corp
Oishi Group Plc
Oregon Chai Inc.
Yogi Tea
Buddha Teas
ITO EN
Twinings
Pukka Herb
The global green tea market is set for substantial growth, driven by increasing consumer awareness of its health benefits, low caffeine content, and innovative flavour profiles. With a projected valuation of US$24.7 Bn by 2030 and a CAGR of 9% from 2023 to 2030, green tea is poised to become a mainstream beverage with global reach. Key players and regions are positioning themselves to leverage green tea's potential, ensuring a dynamic and competitive market landscape in the coming years.